39 state AGs pile into SCOTUS fight as NFL presses for quick review

States and NFL press for Supreme Court review

Attorneys general from 39 states and the District of Columbia have filed a brief in the Supreme Court case Flaherty v. Kalshi, adding to the push for review alongside a separate filing by the NFL, according to ESPN reporting cited by thesportsleader.com. The dispute concerns whether federal law prevents states from applying their gambling rules to prediction markets.

New Jersey is seeking a resolution of conflicting appeals court decisions over its authority to enforce gambling laws against Kalshi. The state helped drive the expansion of legalized sports wagering more than a decade ago and now oversees a substantial sportsbook market, thesportsleader.com reported.

League challenges federal oversight

The NFL submitted its friend-of-the-court brief on Thursday, urging the justices to take up the case promptly and questioning whether the Commodity Futures Trading Commission (CFTC) can sufficiently protect professional football’s integrity. The filing came as Week 5 of the 2026 season opened Thursday with the Tampa Bay Buccaneers visiting the Dallas Cowboys.

Kalshi and Polymarket offer sports-related products resembling those available at sportsbooks, but operate as financial exchanges: users trade event contracts instead of making conventional wagers. They currently fall under CFTC oversight, according to thesportsleader.com.

The NFL argued that prediction markets would handle billions of dollars in wagers on its games each season and that waiting would heighten risks to consumers and competition integrity, according to ESPN. The league had previously raised concerns with the CFTC about contracts tied to officiating decisions and results susceptible to manipulation by one person. Its brief also claimed the commission has 543 employees nationwide, contrasting that staffing with the collective resources of state regulators.

The CFTC told ESPN it had held discussions with the NFL without reaching agreement on improved cooperation. An NFL source told ESPN the league would accept federal regulation if it followed the approach taken by state regulators. Kalshi’s response in the case is due Nov. 9.

What it means for prediction markets

• The immediate question is review, not a final ruling. The NFL wants the Supreme Court to move quickly on New Jersey’s request; its filing does not resolve the jurisdictional dispute.
• Regulatory authority is the central issue. The case asks whether states can enforce gambling laws against Kalshi despite federal oversight.
• The NFL’s position is conditional. Its reported willingness to accept a state-style federal framework distinguishes its objections to current safeguards from outright opposition to federal regulation.
• Nov. 9 is the next stated deadline. Kalshi’s response will be the next scheduled submission identified in the reporting.